If Riverfront Development project passes, $640,000 per year for 25 years will be added to city’s debt payments

Last updated: August 22. 2014 11:23PM - 720 Views
By Melanie Yingst



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Melanie Yingst


myingst@civitasmedia.com


TROY — More questions than answers have plagued the Riverfront Development project which will have its third reading a the next city council meeting on Tuesday, Sept. 2.


Council members Robin Oda, Bobby Phillips and Alan Clark have voted not to suspend the rules to pass the first $1.9 million reappropration for the Riverfront Development project on Aug. 18.


The $1.9 million reappropration included: $720,000 for consultants for Hobart Arena work, $85,000 for consultants for design improvements for Treasure Island Park, $1 million for construction work for the Marina building, $150,000 parking lot reconstruction at Treasure Island Park and $12,500 for App Architecture to complete plans and bidding documents for the marina building and construction administration.


City of Troy’s director of public service and safety Patrick Titterington responded to a host of questions regarding the Riverfront Development Project as well as other civic matters on behalf of Mayor Michael Beamish.


Titterington said the reason all three areas of the project — Hobart Arena, Treasure Island Park and the Marina — are being packaged together is “because all represent Troy’s Riverfront Development investment potential. They are not separate projects but part of an integrated approach and vision for Troy’s future.”


If the $10 million Riverfront Development project is passed as a whole, city officials have estimated an annual payment of $640,000 per year for 25 years for the payments for the project with current interest rates.


“Whether they are done separately or together, the interest costs will be the same. According to the City Auditor (John Stickel), there may be increased interest costs the longer council delays in making a decision.”


When asked if the projects could be separated and therefore funded per project, Titterington said, “This is and has been a package of recommendations regarding riverfront development. Of course, any delays in funding a part of the project would, due strictly to inflation and the passage of time, in all probability increase the portions of the project that would be deferred.”


Several council members have cited other areas the city of Troy needs to improve such as street projects as the reason they are hesitant to pursue the $10 million Riverfront Development project as a whole.


Council member Robin Oda said one area of the city, Main Street from the public square to I-75, is one area she believes needs attention to its curbs, sidewalks and streets in the immediate future.


In regards to the project time lines of such street projects, Titterington said, “We continually evaluate each area and each service of the city and make adjustments accordingly. Main Street is an ODOT-controlled road and any future project would be scheduled and primarily funded by them.”


In regards to city street conditions, Titterington said the city of Troy increased its paving program in 2014 up to $600,000 from its previous funding of $350,000 to $500,000.


Council member Alan Clark has stated during council meetings that the east side of the city has had its streetscape project pushed back over the years.


Titterington said the east side street enhancement project is currently being designed with the project to be constructed in 2015.


CITY OF TROY’S DEBT SERVICE


If the $10 million Riverfront Development project is passed as a whole, city officials have estimated an annual payment of $640,000 per year for 25 years for the entire project with current interest rates.


In 2014, the city of Troy will pay a total of $765,839 in principal and interest payments for its current bond improvement projects which include: Troy Memorial Stadium improvements, Elm Street Improvements, the Troy Aquatic Center, the city’s cemetery building and Troy Fire Station No. 2.


The stadium underwent renovation in 2003 for a $3.2 million dollar facelift, which added a new locker room, an Alumni victory room, an upgrade to a NCAA regulation track and re-bricking the front façade.


The Troy Memorial Stadium improvement payments are approximately $225,000 per year until 2022. The city of Troy will pay $219,750 in 2014. In July 2009, the Troy City Schools board of education voted 4-1 to approve the purchase of Troy Memorial Stadium from the city of Troy for a one time payment of $15,000. The school board previously leased the facility for $12,000 per year.


After the Troy Memorial Stadium payments are complete in 2022, the city’s debit service payments will drop to $533,781 in 2023 and $540,400 in 2024 for the rest of the projects.


Of the current debt service payments, the following are the projects separate payments as part of the $760,000 per year payment through 2024:

•The Elm Street improvement project will cost approximately $45,140 to $42,000 per year until its paid off in 2024.


•The Troy Aquatic Center debt service payment ranges from $285,383 in 2014 until its final payment of $283,876 in 2024.


•The cemetery building debt service payment ranges from $31,577 in 2014 to its final payment of $32,741 in 2024.


•Troy Fire Department’s Fire Station No. 2 debt service payment ranges from $183,996 in 2014 to its final payment of $180,975 in 2024.


Melanie Yingst can be reached at myingst@civitasmedia.com or follow her on Twitter @Troydailynews

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